What does a disability insurance policy mean by “Presumptive Disability”

Presumptive disability means the insured is considered total disability due to an injury or sickness that causes the total loss of power of speech, hearing in both ears, sight of both eyes or the use of two limbs. Usually, full benefits are paid immediately without a need to satisfy the elimination period, even if you are working. Presumptive Disability benefits are paid for as long as the loss continues, until the maximum benefit period selected, for example to age 65.


Some policies would actually go over and beyond the maximum benefit period and pay lifetime benefits. An insured covered under such a policy and lives to age 90 would receive twenty-five years additional benefit payments over a policy that limits payments to the maximum benefit period.


A major distinction in how presumptive disability is defined is the inclusion of the term irrevocable loss in some policies. Irrevocable loss means the final, unalterable or irreparable total loss of use without any possibility of recovery.



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